Gold prices extended losses on Thursday as the Federal Open Market Committee indicated that interest rates can be hiked soon. As of 1125 hours GMT, gold in the international market was available at $1,797.90 per ounce, shedding $12.60. The gold price witnessed the overnight sharp decline from the 1,820 to $1,810 after the minutes of the December 14-15 Federal Open Market Committee (FOMC) meeting, released on Wednesday, said most participants judged conditions for a rate hike could be met soon if the recent pace of labour market improvements continued. The price of 10 grams of yellow metal in Pakistan, meanwhile, went down to Rs102,200 after shedding Rs1,100. Gold in the local market was available at Rs103,300 on Wednesday last. A relatively higher decrease in the price of yellow metal in the local market was due to an overnight decrease in its price when the local market was closed. Moreover, the Pakistan rupee also depreciated by 0.10 percent against the American currency during the day, which also affected the local gold prices. According to the FOMC minutes: “Participants remarked that a quicker conclusion of net asset purchases would better position the committee to set policy to address the full range of plausible economic outcomes…participants remarked that the committee should continue to be prepared to adjust the pace of purchases if warranted by changes in the economic outlook.” From a technical perspective, the 14-day Relative Strength Index (RSI) has pierced the midline for the downside, pointing to more losses going forward. The latest leg down has taken out all the major daily moving averages (DMA) support levels, as bears now attack the 100-DMA at $1,793. A sharp sell-off is expected on a firm break below the latter, opening floors for a test of the December 29 low of $1,789. The next downside target is seen at the December 21 low of $1,785. That will emerge as a powerful support for gold bulls. On the flip side, any recovery attempts will face a strong supply at $1,800, where the 21 and 200-DMAs converge. Further up, bulls will retest the 50-DMA support-turned-resistance at $1,805. Daily highs of $1,812 will guard the additional upside.